IKEA looking to open smaller stores: India CEO Peter Betzel1 min read . Updated: 09 Aug 2019, 04:46 PM IST
- Smaller stores will help customers cut down on travel time in reaching IKEA's outlets
- In the coming months, IKEA will also begin its e-commerce operations in Hyderabad, and also in other cities such as Mumbai and Delhi where it is slated to open new stores
Hyderabad: Swedish retail giant IKEA is looking to open smaller stores in major cities, so that customers can cut down travel time in reaching its outlets. Peter Betzel chief operation officer (CEO), IKEA India said that it is important to be closer to where people are living, and that the company is “planning to have more formats" including an e-commerce platform.
“Five years ago we talked about 25 stores, now we are talking about many more meeting places in different formats in cities. We are looking at that all over the world. It is very important to be closer to where people are living," stated Betzel after celebrating the first anniversary of IKEA’s Hyderabad store which began operations last year. He added that IKEA’s target is to meet 100 million customers in the coming future.
In the coming months, IKEA will also begin its e-commerce operations in Hyderabad, and also in other cities like Mumbai and Delhi where it is slated to open new stores. The smaller outlets of the retail giant will be run in cities with limited products. Aurelie Raimon, store manager of the Hyderabad outlet said that about 4 million customers visited the place over the last one year.
In fact, after the inauguration of the Hyderabad store last year, visitation averaged at about 100,000 a week. The store has about 7,500 products, of which about 1,000 are priced at under ₹200. The “Kalas" four-piece spoon set, priced at ₹ 15, has become the top-selling article in terms of volume. A press release from IKEA on Friday said that the most-loved product categories are beds, mattresses, bathroom decoration and dining, among customers
The Hyderabad store, which is a 400,000 sq ft outlet, is one of the 25 outlets the company said it would open by 2025. So far, more than 3,50,000 people have signed up for the Ikea family membership, added the release. The Swedish company also has 41% of women employees in Hyderabad, where its most loved products the HÖVÅG pocket spring mattress, Ektorp 3-seater sofa, FIXA tool set and the Kalas spoon sets (no.1 selling item in terms of volumes).
Also read: IKEA’s long road to India: A timeline